RMIN 4000 UGA EDMUNDS CORE MAIN EXAM 2026
QUESTIONS AND ANSWERS SURE A+
✔✔group insurance marketing - ✔✔Products are sold through group representatives
employees who receive a salary and incentive payments based on sales (can pay for
insurance by payroll deduction)
✔✔what are the major insurance company operations? - ✔✔ratemaking, underwriting,
production, claims settlement, reinsurance, and investments
✔✔ratemaking - ✔✔the pricing of insurance and the calculation of insurance premiums
✔✔what is the problem with ratemaking? - ✔✔Firms do not know the cost of their
products in advance
✔✔actuary - ✔✔individual who uses complex statistical methods and technology to
analyze loss and other data to determine rates and premiums
✔✔what are the regulatory goals of ratemaking? - ✔✔rates must be adequate, not be
excessive, and should not be unfairly discriminatory
✔✔what are the business goals of ratemaking? - ✔✔rates should be stable,
responsible, provide for contingencies, promote loss control, and be simple
✔✔underwriting - ✔✔The process of selecting, classifying, and pricing applicants for
insurance to develop and maintain a profitable book of business
✔✔underwriting guide - ✔✔states the company's underwriting policy which includes:
lines of business written, policy forms and rating plan used, acceptable, borderline, and
prohibited business, amounts of insurance that can be written, geographic territories,
and business that requires approval from a senior underwriter
✔✔what are some underwriting principles? - ✔✔attain an underwriting profit, select
prospective insureds according to guidelines, and provide equity among the
policyholders
✔✔what are some sources of underwriting information? - ✔✔application, agent,
physical inspection, physical examination (life), or vendor reports (fire, auto)
✔✔Underwriting Decisions - ✔✔1. Accept the application and issue the policy
2. Accept the application subject to restrictions or modifications
3. Reject the policy
, ✔✔what are some other underwriting considerations? - ✔✔are the rates currently
adequate, is reinsurance available, and should existing businesses be cancelled or non-
renewed?
✔✔production - ✔✔the sales and marketing activities of insurers
✔✔producers - ✔✔Agents/Brokers who sell insurance
✔✔Claims Settlement objectives - ✔✔Verification of a covered loss, fair and prompt
payment of claims, and provide personal assistance to the insured
✔✔claims adjusting - ✔✔the process of determining coverage, legal liability and
damages, and settling the claim
✔✔"First-Party" claim - ✔✔insured submits claim for insurer to make a payment to
insured (fire, theft, hail)
✔✔"Third-Party" claim - ✔✔Submitted against a negligent insured and insurer pays
damages caused from their insured to injured party (for bodily injury, physical damage,
death, personal injury, etc.)
✔✔claims process - ✔✔notice of loss, claim investigation, proof of loss, and payment of
loss or denial of claim
✔✔reinsurance - ✔✔An arrangement by which the primary insurer (that initially writes
the insurance) transfers to another insurer (called the reinsurer) part or all of the
potential losses associated with such insurance
✔✔ceding company - ✔✔primary insurer that initially wrote the insurance
✔✔reinsurer - ✔✔company that accepts the insurance from the ceding company
✔✔retention limit - ✔✔the amount of insurance retained by the ceding company
✔✔cession - ✔✔the amount of insurance ceded to the reinsurer
✔✔retrocession - ✔✔when reinsurer insures part or all of its risk with another reinsurer
✔✔what are the functions of reinsurance - ✔✔increase underwriting capacity, stabilize
profits, reduce the unearned premium reserve, provide protections against a
catastrophic loss, retire from a line of business, and obtain underwriting advice on a line
for which the insurer has little experience
✔✔what are the two types of reinsurance? - ✔✔facultative and treaty
QUESTIONS AND ANSWERS SURE A+
✔✔group insurance marketing - ✔✔Products are sold through group representatives
employees who receive a salary and incentive payments based on sales (can pay for
insurance by payroll deduction)
✔✔what are the major insurance company operations? - ✔✔ratemaking, underwriting,
production, claims settlement, reinsurance, and investments
✔✔ratemaking - ✔✔the pricing of insurance and the calculation of insurance premiums
✔✔what is the problem with ratemaking? - ✔✔Firms do not know the cost of their
products in advance
✔✔actuary - ✔✔individual who uses complex statistical methods and technology to
analyze loss and other data to determine rates and premiums
✔✔what are the regulatory goals of ratemaking? - ✔✔rates must be adequate, not be
excessive, and should not be unfairly discriminatory
✔✔what are the business goals of ratemaking? - ✔✔rates should be stable,
responsible, provide for contingencies, promote loss control, and be simple
✔✔underwriting - ✔✔The process of selecting, classifying, and pricing applicants for
insurance to develop and maintain a profitable book of business
✔✔underwriting guide - ✔✔states the company's underwriting policy which includes:
lines of business written, policy forms and rating plan used, acceptable, borderline, and
prohibited business, amounts of insurance that can be written, geographic territories,
and business that requires approval from a senior underwriter
✔✔what are some underwriting principles? - ✔✔attain an underwriting profit, select
prospective insureds according to guidelines, and provide equity among the
policyholders
✔✔what are some sources of underwriting information? - ✔✔application, agent,
physical inspection, physical examination (life), or vendor reports (fire, auto)
✔✔Underwriting Decisions - ✔✔1. Accept the application and issue the policy
2. Accept the application subject to restrictions or modifications
3. Reject the policy
, ✔✔what are some other underwriting considerations? - ✔✔are the rates currently
adequate, is reinsurance available, and should existing businesses be cancelled or non-
renewed?
✔✔production - ✔✔the sales and marketing activities of insurers
✔✔producers - ✔✔Agents/Brokers who sell insurance
✔✔Claims Settlement objectives - ✔✔Verification of a covered loss, fair and prompt
payment of claims, and provide personal assistance to the insured
✔✔claims adjusting - ✔✔the process of determining coverage, legal liability and
damages, and settling the claim
✔✔"First-Party" claim - ✔✔insured submits claim for insurer to make a payment to
insured (fire, theft, hail)
✔✔"Third-Party" claim - ✔✔Submitted against a negligent insured and insurer pays
damages caused from their insured to injured party (for bodily injury, physical damage,
death, personal injury, etc.)
✔✔claims process - ✔✔notice of loss, claim investigation, proof of loss, and payment of
loss or denial of claim
✔✔reinsurance - ✔✔An arrangement by which the primary insurer (that initially writes
the insurance) transfers to another insurer (called the reinsurer) part or all of the
potential losses associated with such insurance
✔✔ceding company - ✔✔primary insurer that initially wrote the insurance
✔✔reinsurer - ✔✔company that accepts the insurance from the ceding company
✔✔retention limit - ✔✔the amount of insurance retained by the ceding company
✔✔cession - ✔✔the amount of insurance ceded to the reinsurer
✔✔retrocession - ✔✔when reinsurer insures part or all of its risk with another reinsurer
✔✔what are the functions of reinsurance - ✔✔increase underwriting capacity, stabilize
profits, reduce the unearned premium reserve, provide protections against a
catastrophic loss, retire from a line of business, and obtain underwriting advice on a line
for which the insurer has little experience
✔✔what are the two types of reinsurance? - ✔✔facultative and treaty
